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Govt asked to inject back $24 million into KCM

Filed under: Business,Latest News |
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Vedanta Must Return Community Campaign Movement has asked government to inject back the $24 million forfeited by Milingo Lungu into Konkola Copper Mines (KCM) to save jobs.

Movement Coordinator Chishala Mwamba says since KCM was placed under liquidation in 2019, the towns of Chingola and Chililabombwe have experienced unprecedented levels of unemployment resulting from thousands ofpeople being placed on forced leave or experiencing termination of their contracts.

Mwamba says this unfortunate situation has led to an alarming rise in poverty levels, crime rates, and numerous other illicit activities, directly attributable to the lack of financial capital for KCM’s operations.

He says given the prevailing circumstances, the forfeiture of substantial funds by Milingo, which were misappropriated from KCM, presents an opportunity for government to alleviate this crisis and safeguard the livelihoods of the people by reinvesting the money back into KCM.

“The injection of these funds into KCM holds the promise of averting the economic deterioration that has been prevailing within our communities.

“Even as we anticipate the complete handover of KCM to Vedanta Resources, it is prudent to ensure that available liquidity is strategically reinvested into the asset. This will serve as a comprehensive strategy aimed at revitalizing the mining sector and fostering sustainable economic growth.

“These funds, if allocated towards KCM’s operational needs, has the potential to yield substantial benefits for the affected communities, offering a lifeline to those facing economic uncertainty.

“We, therefore, implore the government, particularly the Finance Minister, Honourable Situmbeko Musokotwane, to allocate these funds towards the revitalization of KCM.

“This concerted effort, coupled with Vedanta’s significant investment commitments of $1.3 billion investment, $250 million for contractors and suppliers, and $20 million for Corporate Social Responsibility (CSR) activities, represents a holistic approach to addressing the multifaceted challenges confronting our communities.

“The availability of these funds stand as a pivotal opportunity to mitigate the escalating socioeconomic challenges being faced by the communities of Chingola and Chililabombwe,” Mwamba said.

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